Why VAT Health Checkup is important?
To ensure there are no discrepancies while accounting for VAT, a comprehensive VAT Health Checkup takes care in identifying any errors or mistakes in records maintenance, documents preparation and submission of VAT returns. VAT health checkup is important because any mistake is going to cost the company in the form of heavy fines by the FTA according to the Law. It is a responsibility of a taxable person and businesses to ensure that the business is VAT law compliant.
What all will be covered as part of the VAT Health Check?
The following can be included as part of the VAT Health Check depending upon the scope agreed:
Reviewing the complete VAT cycle beginning from VAT registration, VAT returns filed for the whole period, assessment of books of accounts and related VAT documents.
Reconciliation of the accounting record and financial statements with VAT returns filed for the period.
Reviewing of how the output and input VAT calculations were done and checking the accuracy of the same.
VAT planning for considering all the eligible transactions for maximizing input VAT claim, considering the right amount output VAT in order to avoid VAT penalties in future whenever any FTA audit takes place for the company.
Identification of errors if any in the VAT returns that were already filed and suggesting the way forward to correct them without getting into huge penalties later.
Reviewing other requirements like keeping the records for enough number of years, raising tax invoice by following the requirements of the Law and other specific requirements depending upon the business of the company
Correcting the errors by submitting the Voluntary Disclosures Form 211, if required to rectify errors in the VAT returns that are already filed.
Assistance in preparation of VAT Audit files with complete audit trail